Silver: Outlook and Investing

This article was contributed by an anoymous reader and I decided to post it here to reiterate points I’ve made about investing in metals because they don’t (historically) track stock indexes or currencies. Anyway, here’s the article (you can submit articles to jtrotta@gmail.com):

The fact that silver is not the most popular precious metal used for jewellery should not deter someone from considering it as an investment option. Silver is the most proficient conductor of electricity, and is used in many products including film, solar cells, thermal windows, silverware, and many decorative items. The list of industrial and technological uses for silver goes on and on. There are many applications where only silver can be used.

Although the price of silver has risen fairly slowly, with some variation, over the past few years, many experts agree that it will continue to maintain a rising trend. With the unstoppable progress of technology, the demand for silver should never decrease, and in fact should increase proportionately.

One of the factors an investor should look at is the fact that the price of silver has not usually swung wildly with the rise and fall of the value of the dollar. Silver has been known to increase in value even when the value of the dollar has fallen sharply. When an investor is looking for safety and consistency, having silver as part of your investment portfolio can seem like the right choice.

There are several options for the investor who is looking to include silver in their investment portfolio. Silver bullion bars, coins, or medallions can be bought as a direct product and stored by the investor. This can pose the question of security, however, and the investor should be sure that there is a safe place for storage. One of the advantages of this kind of silver investment is that conversion into cash can be much faster.

Investments in silver that can be done on paper include silver mining stocks, silver certificates, and silver futures, just to name a few. The investor should check with a financial advisor to find out all the options for investment, and which one would be the right choice.

2 Responses to “Silver: Outlook and Investing”

  1. StockTape says:

    Nice post. Sometimes everyone overlooks the less obvious commodities such as silver. Good to see somebody making notice of that.

  2. JAMES GOCHENOUR says:

    MY FRIEND IS BUYING SILVER 100OZ BARS AND STORING THEM IN HIS BASEMENT. HE’s BETTING ON A TOTAL DECLINE IN THE VALUE OF THE US DOLLAR